This article discusses among others the Pazos-Simonsen Mechanism - short term wage controls as a means of abrogating existing wage contracts, short serm wage controls as a mechanism for co-ordinating expectations and short term wage controls in semi-heterodox stabilization programmes as well as...

During the transition from a centrally planned economy to a market economy, many countries seem to have experienced some degree of macroeconomic instability. This paper attempts to provide a theoretical explanation of this phenomenon. The paper develops a simple monetary model and shows how...